An integration of cultural frames of reference with the market entry decision

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Most models predicting the foreign market entry decision focus on integration strategy. This paper analyzes the decision from the home country only. The actions expected of managers in their home country play a significant role in the entry mode decision and these expectations are generally ignored. Instead firm level Competitive Advantages and Efficiency gains are often hypothesized to determine entry mode decisions. Social exchange is conducted with behavioral as well as economic payoffs and the entry mode decision is not immune to these unseen payoffs. Drawing from several conceptual points of view this paper uses Institutional theory to conceptualize how national culture leads to a preferred frame of reference for the entry mode decision. [PUBLICATION ABSTRACT]

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